The country’s largest commercial shipbuilder Cochin Shipyard Limited (CSL) on Monday reported a 64.54 per cent dip in standalone profit at Rs 42.64 crore in three months ended June, adversely impacted by the COVID-19 pandemic outbreak and subsequent lockdown. The company had posted a profit of Rs 120.25 crore in Q1FY20, as per a regulatory filing.
Income from operations declined 54.87 per cent to Rs 332.47 crore in June quarter of the current fiscal from Rs 736.85 crore in the same period last year.
“The company’s operations and financial results for the quarter ended June 30, have been adversely impacted by the COVID-19 outbreak. The pandemic had prompted a lockdown resulting in a temporary disruption of operations from March 23 to May 5,” CSL said in the regulatory filing.
The company continued to work on a reduced time scale for a “significant” period of the quarter which further affected the financials for the current quarter, it added.
The company has looked at the possible future uncertainties in economic conditions because of the pandemic from internal and external information such as current contracts, financial strength of supply chains and customers, among others, it said, adding, that it “expects the carrying amount of these assets will be recovered and there is no significant impact on liabilities accrued.”
CSL has bid and submitted a Resolution Plan for Tebma Shipyard Limited (TSL) under the Corporate Insolvency Resolution Process (CIRP), which has been accepted by the Committee of Creditors (CoC) and NCLT has approved the same, the company said.
CSL is engaged in construction and repair of ships for domestic and international clients, and has its facility in Malpe, Karnataka.